Sawmills in Finland may have to shut down production due to the ongoing lockout at paper companies which started on May 18.

A Stora Enso spokesperson said this week that two sawmills have already closed in the country and added: “One week from now practically all our capacity will be exhausted in Finland.”

The Finnish Forest Industries Federation (FFIF), which represents the pulp and paper industry, said this week that the lockout will be extended to June 29 if the parties involved have not concluded a competitive collective labour agreement by then.

The FFIF also wants to abolish compulsory stoppages at Christmas and in the summer.

The paper companies began the lockout to ensure that an overtime ban and illegal strikes by the Finnish Paperworkers’ Union would not cause continuous shutdowns of the pulp and paper machines.

&#8220Even if the dispute is resolved in the very near future, the loss of 250,000m3 per week from global softwood supply must have an impact ”

Charles Hopping, chairman of Hoppings Softwood Products plc

However, the sawmills are caught between the pulp and paper industries and if the action continues the results for the timber industry could be extremely serious.

Charles Hopping, chairman of Hoppings Softwood Products plc, said: “Although Finland is not a major supplier of softwood to Hoppings we are concerned about the effect the pulp and paper strike and lockouts will have on our general supply situation. At present we have seen little impact apart from slight disruption to shipping and some mills switching contracts to other mills in the same group.

“What is happening, however, means that sawmills will have problems sourcing raw material and also disposing of their chips, so that in the near future we may find our shippers increasingly unable to supply the market. The effect is likely to be increased if clerical workers carry out their threat to boycott export paperwork for Finnish Forest Industry Federation members.

“Even if the dispute is resolved in the very near future the loss of 250,000m3 per week from global softwood supply must have an impact, and this impact is likely to be concentrated in the higher grades of redwood and whitewood as well as a number of specialities.”